The Analyst’s Corner include Analyst Interviews and Analyst Commentaries.
Analyst Interviews are paid content requested by advertising companies. We interview an analyst who has prepared coverage of the company and interview them for an understanding of their perspective on the company and the investment potential the company represents.
Analyst Commentaries are paid content requested by advertising companies. We review each request and proceed only when we believe there is the potential for added value to our audience. We work with Thomas Schuster to produce a commentary on the technical content of the news release so investors can better understand it. Mr. Schuster is paid for his time to produce these commentaries.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities.
Continued success with the drill bit has been moving Kivalliq Energy closer to its goal of outlining a viable uranium deposit in Northern Canada. Despite this success, the market currently remains distracted from this evolving story. I suspect this market oversight will correct itself and allow savvy uranium investors to profit over the long run.
In two recent press releases dated Oct 3rd and 5th, Kivalliq Energy announced that it has been successful at identifying new zones and extending uranium mineralization down-dip at known zones on its Angilak Property in Nunuvut, Canada. In the past year, the company has identifed five new zones of uranium mineralization, specifically the Western Extension, Eastern Extension, Pulse Zone, Spark Zone, and the Blaze zone discovered last season.
The Angilak Property also hosts targets not shown on the image above, such as the YAT and VGR zones. The YAT zone is located 16 kilometres southwest of Lac Cinquante and central to the Angilak property. The VGR zone is situated on the west side of the property approximately 25 kilometres northwest of the resource area. Both zones are of great interest due to similarities with “unconformity related” targets.
The company has already delineated a NI 43-101 inferred resource on its Lac Cinquante zone. That resource outlines 810,000 tonnes averaging 0.79% U3O8 (or 17.5 lbs. uranium per tonne). The current resource contains 14.15 million lbs. of Uranium. As a comparison, Areva is currently in the permitting phase of its bulk-tonnage low-grade Kiggavik uranium deposit (127 million lbs. U3O8 with an average grade of 0.55% U3O8). This deposit lies just 214 km north of Lac Cinquante. In this remote region of Canada, major uranium producers like Areva or Cameco will most likely need to see at least 30 to 40 million lbs. of contained uranium in a near surface resource to consider Kivalliq Energy a takeover candidate. With 14.5 million lbs. U3O8 outlined so far, Kivalliq is almost half way there.
The current resource only covers the lac Cinquante Main zone and it still remains open for expansion. Since that resource was announced, the company has outlined additional mineralization in both the Eastern and Western extensions. Of particular significance is the news that six of seven diamond drill holes drilled into the Western Extension intersected highly radioactive intervals at vertical depths ranging from 193 to 327 metres. These holes have deepest known radioactive intervals to-date on the Angilak Property and demonstrate the potential to expand significant uranium mineralization to much greater depths. Assays are still pending from these holes. A total of 54 diamond drill holes (9,468 metres) were drilled on the Western Extension and results from 17 have been released so far. In addition, Kivalliq has drilled a total of 44 diamond drill holes on the Eastern Extension this year. The company intends to incorporate results from the Eastern Extension and the Western into an updated resource calculation for the Lac Cinquante deposit by end of Q1 2012.The potential of the newly discovered Yat and VGR zones also deserves a brief comment. In both areas, geophysics, geology and mineral occurrences are similar to what is seen in the high grade deposits of the Athabasca Basin of Saskatchewan. As a result they have been deemed high priority targets. Future drilling will target the basement contact below these showings.
Thomas Schuster, Analyst Bio:
With a degree in Geological Sciences from the University of Toronto, Thomas started his career in the 1990s as an exploration geologist in the famous Timmins mining camp in Northern Ontario. He then moved to Vancouver and took a position as staff Journalist at the well-known mining publication, The Northern Miner, reporting the merits and shortcomings of Canadian exploration and mining projects worldwide. This built a foundation for his later work as a Mining Analyst for the Toronto-based institutional investment firm, Fraser Mackenzie. Thomas is currently based in Vancouver working as an independent mining analyst.
Disclosure: No positions at time of writing.
Kivalliq Energy Corporation is a client of Dig Media. Dig Media was paid a fee for the creation and dissemination of this commentary.
Kivalliq Energy: Western Extension Drilling Intersects Deepest Mineralization to Date
Kivalliq Energy Corporation (TSXV:KIV) announced an update on diamond drilling at the Western Extension zone, located 450 metres along strike and west of the high grade Lac Cinquante uranium deposit.
Read the full article: “Kivalliq Energy: Western Extension Drilling…”
Kivalliq Energy Corporation: 2011 RC Exploration Strategy Yields New Discoveries
Kivalliq Energy Corporation (TSXV:KIV) provided an update from property-wide exploratory reverse circulation and diamond drilling proximal to and along strike of the structure hosting the high grade Lac Cinquante uranium deposit.
Read the full article: “Kivalliq Energy Corporation: 2011 RC…”